The United Nations says Trump’s increased tariffs will extend economic uncertainty
New tariff fees from 14 countries will do more in the future, extending the former start date for three weeks.
- President Trump delayed the implementation of the tariff increase, originally set on July 9th.
- This delay revived the debate on the “octopus trade.” This is a term that suggests investors will predict market rebound following Trump’s tariff announcement.
- Trump has sent letters to leaders in Brazil, Indonesia and many other countries informing them of tariff rates on the country’s goods.
On April 2nd, President Donald Trump announced extensive tariffs in what he called “liberation day.” Shortly afterwards, he paused his climbing rate for 90 days.
That suspension was set to expire on July 9th, but instead of tariffs coming into effect, Trump extended the deadline, sent a series of letters to international leaders, and issued new tariff charges for goods from his country.
The tariffs announced in the letter are currently set to take effect on August 1st, and Trump said the day will not change. Trump’s letter warned that if the recipient raises tariffs, the US would retaliate with its own interest rate hike.
After the initial suspension, the administration predicted that new trade transactions would be achieved quickly, but it has struggled to lock these transactions except for a few countries. The White House rejected the notion that delays were due to challenges.
However, this is not the first time that tariff deadlines have been moved since Trump took office. The recent delay in deadlines has brought tacos back. How did you get here?
What does taco mean?
Financial Times columnist Robert Armstrong created “Taco Trade” in May, explaining how some investors predict market rebound amid Trump’s repeated tariff policies.
The acronym refers to “playing cards always kick out chickens.”
Armstrong has announced a sudden tariff on the assumption that Trump will retreat his tariff order, describing the octopus trade as a strategy for many investors to invest in markets that will fall when the market recovers.
Trump fought back at a reporter asking about the term on May 28th, saying, “You ask such a troubling question. It’s called negotiation.”
Which country received the letter announcing upcoming tariff fees?
As of July 10th, the following countries have been sent a letter announcing the new tariff fees. In many cases, tariff rates are the closest to the “mutual” tariff rates announced on the day of release. The White House says more letters will come out over the coming weeks.
Importers pay 10% baseline tariffs on goods from around 180 countries, with delays only applied to higher mutual tariffs targeting a subset of lesser countries.
Donations: Francesca Chambers, Joey Garrison, USA Today
Kinsey Crowley is a Trump Connect reporter for the USA Today Network. Contact her at kcrowley@gannett.com. Follow her on X and Tiktok @kinseycrowley or Bluesky @kinseycrowley.bsky.social.
